The Federation Account Allocation Committee (FAAC) has officially disbursed a massive ₦2.55 trillion from the June 2026 revenue. The funds were shared among the Federal Government, the 36 states, and the 774 local government councils during the FAAC’s July meeting in Abuja.

According to Bawa Mokwa, the Director of Press and Public Relations in the Office of the Accountant-General of the Federation, this distributable amount was pulled from a total gross revenue of ₦4.5 trillion recorded in June.

Here is a quick breakdown of how the national wealth was divided, what drove the numbers, and what it means for public sector financing.

💰 How the ₦2.55 Trillion Was Shared

Before the funds hit the sharing table, necessary financial housekeeping took place: ₦160.74 billion was deducted for the cost of revenue collection, and ₦1.78 trillion was set aside for transfers, interventions, and refunds.

The remaining ₦2.55 trillion—comprising ₦1.8 trillion from statutory revenue and ₦740.72 billion from Value Added Tax (VAT)—was shared as follows:

  • Federal Government: ₦923.43 billion

  • 36 State Governments: ₦838.2 billion (combined)

  • 774 Local Government Councils: ₦591.39 billion (shared)

  • Oil-Producing States: An additional ₦197.61 billion (as the constitutional 13% derivation revenue)

Deep Dive: The Statutory Revenue Split

Out of the ₦1.8 trillion distributable statutory revenue pool:

  • FG: ₦849.36 billion

  • States: ₦430.81 billion

  • Local Governments: ₦332.13 billion

Deep Dive: The VAT Revenue Split

From the ₦740.72 billion distributable VAT revenue:

  • FG: ₦74.07 billion

  • States: ₦407.39 billion

  • Local Governments: ₦259.25 billion

📈 What Drove the Revenue Surge?

June was a highly lucrative month for the Federation Account. Gross statutory revenue skyrocketed from ₦2.65 trillion in May to ₦3.7 trillion in June—a massive jump of ₦1.04 trillion. Similarly, VAT collections grew by 7.5%, rising from ₦743.68 billion in May to ₦799.74 billion.

FAAC attributes this stellar performance to significant increases in several major revenue streams, including:

  • Company Income Tax

  • Capital Gains Tax

  • Stamp Duties

  • Petroleum Royalties & Gas Flaring Penalties

  • Value Added Tax

  • Import Duty and Common External Tariff (CET) levies

The Underperformers

Despite the overall boom, not every sector saw growth. FAAC noted that revenue from Petroleum Profit Tax, Hydrocarbon Tax, and mineral royalties actually declined during the period, while excise duties only managed a marginal increase.

Looking Ahead

The committee expressed optimism regarding the latest figures, noting that sustained improvements in national revenue generation are crucial. As collections from major sources continue to strengthen, these monthly allocations will provide critical support for public sector financing and development projects across all three tiers of government.